Author: Andrew Blanchard, Chief Executive Officer, Sterling Capital Brokers

Navigating the changing world of employee benefits and selecting the best group benefits plan for your organization can be a challenge. In today's dynamic economic climate, marked by unprecedented challenges and shifting priorities, finding the right balance between providing valuable benefits to employees and controlling costs is essential. To navigate this complex landscape successfully, it's essential for organizations to partner with brokers who not only understand their unique needs but also have the expertise to optimize the entire benefits program. To navigate this complex landscape, here are the four key questions to ask your broker about your benefits plan, addressing crucial aspects such as; plan design, the Total Loss Ratio (TLR), ease of administration, and rate lock strategies. These questions will help you make well-informed choices that can result in affordable yet employee-focused benefits solutions.

1. Plan Design: Aligning with Organizational Values
The foundation of a successful group benefits plan is a well-thought-out plan design. It serves as a manifestation of your company's values and objectives. When developing your plan, it is imperative to consider your organization's philosophy. Are your priorities centered on retaining existing talent, attracting specific skill sets, enhancing employee contentment, or cost containment? Understanding your organization's priorities is essential to creating a plan that meets both your employees' and your company's needs. By aligning plan design with your organization's philosophy, you create incentives that lead to long-term success for your enterprise.

2. Total Loss Ratio (TLR): Maximizing Value and Cost Control
Given today's economic climate, effectively managing insurance costs is of utmost importance. The Total Loss Ratio (TLR) serves as a critical metric that reflects the balance between insurance coverage and administrative fees within your plan. It's not just about the immediate costs; it's about ensuring that your plan remains cost-effective over the long term. Brokers with the right expertise and industry connections can assist in driving down the TLR, leading to savings on insurance expenses in the long run. Prioritizing a higher TLR allows you to maximize the value of your group benefits plan and allocate more resources to insurance coverage rather than administrative overheads.

3. Ease of Administration: The Role of Technology and TPAs
As more employees work in hybrid or remote environments, administrative ease is a key consideration. The availability of digital enrollment tools and simple access to plan support is increasingly important for HR teams and administrators. Sterling Capital Brokers believes that providing an administration and service component as part of your benefits plan is essential. This technology layer not only improves the enrollment and service experience for administrators but also grants your team better access to data for improved service, including tasks like managing claims and advocating for clients.

4. Rate Lock: Creating Stability in Plan Pricing
Predictability in your group benefits plan pricing is vital for budgeting and long-term planning. Longer rate lock periods or rate caps on first and second renewals can provide stability, certainty, and more accurate pricing for your organization. These measures allow insurers to evaluate your plan based on multiple years of experience, reducing pricing uncertainties and providing financial security.

Conclusion - The Importance of Broker Selection
Selecting the right broker is a crucial decision. You need a broker that can provide expert guidance on plan design, reduce administrative burdens through technology, and effectively advocate for your organization. By asking these four key questions you can build a group benefits plan that aligns your company's principles, protects your financial well-being, and provides valuable benefits to your employees.

At Sterling Capital Brokers, we understand the intricacies of group benefits plans. Our dedicated team is committed to helping you navigate the complexities of your group benefits plan to create a comprehensive and cost-effective solution that benefits your organization and your employees.

For more information on Sterling Capital Brokers' services, please visit their website: https://sterlingcapitalbrokers.com/